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STUDENT_PPT_C08_kp.pptxChapter 8
Developing a Global Vision through Marketing Research
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objectives
LO1 The importance of problem definition in international research
LO2 The problems of availability and use of secondary data
LO3 Sources of secondary data
LO4 Quantitative and qualitative research methods
LO5 Multicultural sampling and its problems in less-developed countries
LO6 Using international marketing research
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Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Marketing Research
Marketing research is the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making.
As an enterprise broadens its scope of operations to include international markets, the need for current, accurate information is magnified.
A marketer must find the most accurate and reliable data possible within the limits imposed by time, cost, and the present state of the art.
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International Marketing Research
Researchers maintain that entry into a fast developing, new-to-the-firm foreign market is one of the most daunting and ambiguous strategic decisions an executive can face.
Complications in international marketing research:
Information must be communicated across cultural boundaries.
The environments within which the research tools are applied are often different in foreign markets.
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Bill Gates interacts with customers
It’s crucial for top executives to get away from their desks and spend time in the marketplace. While detailed marketing research reports are important, decisions at the very top of the largest corporations must still be informed by a sense of the market and customers, obtainable only through direct contact by top executives.
© Greg Baker/AP Images
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Breadth and Scope of International Marketing Research
Research can be divided into three types on the basis of information needs
General information about the country, area, and/or market
Information necessary to forecast future marketing requirements by anticipating social, economic, consumer, and industry trends within specific markets or countries
Specific market information used to make product, promotion, distribution, and price decisions and to develop marketing plans
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The Research Process
| 1. | Define the research problem and establish research objectives. |
| 2. | Determine the sources of information to fulfill the research objectives. |
| 3. | Consider the costs and benefits of the research effort. |
| 4. | Gather the relevant data from secondary or primary sources, or both. |
| 5. | Analyze, interpret, and summarize the results. |
| 6. | Effectively communicate the results to decision makers. |
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Defining the Problem and Establishing Research Objectives
The major difficulty here is converting a series of often ambiguous business problems into tightly drawn and achievable research objectives.
Researchers often embark on the research process with only a vague grasp of the tota problem.
Other difficulties stem from failures to establish problem limits broad enough to include all relevant variables.
Information on a far greater range of factors is necessary to offset the unfamiliar cultural background of the foreign market.
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Problems of Availability and Use of Secondary Data
The problem for American marketing researchers is sorting through too much data.
Available data may not have the level of reliability necessary for confident decision making for many reasons.
Comparability of data can even be a problem when the best commercial research firms collect data across countries, and managers are well advised to query their vendors about this problem.
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Shortcomings Faced by Foreign Markets
Availability
Authenticity
Reliability
Comparability
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Validating Secondary Data
The following questions should be asked to effectively judge the reliability of secondary data sources:
Who collected the data? Would there be any reason for purposely misrepresenting the facts?
For what purposes were the data collected?
How (by what methodology) were the data collected?
Are the data internally consistent and logical in light of known data sources or market factors?
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Gathering Primary Data: Quantitative and Qualitative Research
Primary data – Data collected specifically for the particular research project at hand
Collected if even after seeking all reasonable secondary data sources, research questions are still not adequately answered
Sources
Sales representatives
Distributors
Middlemen
Customers
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Types of Marketing Research
Quantitative research
A large number of respondents are asked to reply either verbally or in writing to structured questions using a specific response format (such as yes/no) or to select a response from a set of choices.
Qualitative research
Questions are asked––they are almost always open-ended or in-depth––and unstructured responses, including storytelling, that reflect the person’s thoughts and feelings on the subject are sought.
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Lego’s Olivia
This “Olivia” figure attempts to reflect the girls’ reported preferences for thinner shapes and pastel colors, rather than the boxy, primary-colored toys for boys.
© Studio 101/Alamy
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Qualitative Research: Uses
Used in international marketing research to formulate and define a problem more clearly and to determine relevant questions to be examined in subsequent research
Used to stimulate ad message ideas and where interest centers on gaining an understanding of a market rather than quantifying relevant aspects
Helpful in revealing the impact of socio-cultural factors on behavior patterns
Helpful in developing research hypotheses that can be tested in subsequent studies designed to quantify the concepts and relevant relationships uncovered in qualitative data collection
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Problems of Gathering Primary Data
Ability to communicate opinions
Willingness to respond
Sampling in field surveys
Language and comprehension
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A call center in New Delhi, India
Both customer service and telephone survey research are being outsourced to lower-wage English-speaking countries.
© Brian Lee/Corbis
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13 Primary languages listed on a 20-rupee Indian note
Marketing researchers in India have to consider the problems of language diversity.
© John Graham
© John Graham
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Translation Techniques
A researcher cannot assume that a translation into one language will suffice in all areas where that language is spoken.
Marketers use three different techniques:
Back translation
Parallel translation
Decentering
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Japanese second graders writing characters for shou
The Japanese language commonly uses 15,000 kanji characters, which are borrowed from Chinese. The differences in the structure of the language from English make translation of questionnaires a most daunting task.
© Cary Wolinsky/Trillium Studios
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Multicultural Research: A Special Problem
Involves countries that have different languages, economies, social structures, behavior, and attitude patterns
Ensure comparability and equivalency of results
Consider varying reliabilities in different countries
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Research on the Internet: A Growing Opportunity
Online surveys and buyer panels
Online focus groups
Web visitor tracking
Advertising measurement
Customer identification systems
E-mail marketing lists
Embedded research
Observational research (netnography)
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Estimating Market Demand
Expert Opinion
Experts are polled for their opinions about market size and growth rates.
The key in using expert opinion to help forecast demand is triangulation, that is, comparing estimates produced by different sources.
Analogy
Assumes that demand for a product develops in much the same way in all countries, as comparable economic development occurs in each country.
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The ruins of the Temple of Delphi
Everybody wants to see the future—even the ancient Greeks consulted the Oracle of Delphi. Modern forecasters may have better tools, but the hazards of the job are still great. Or, as Yogi Berra eloquently put it, “The future ain’t what it used to be.”
© John Graham
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Exhibit 8.1 Mobile Phone Diffusion Rate (per 100 people)
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Source: World Bank, World Development Indicators 2010 (Washington, DC: World Bank, 2012).
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Problems in Analyzing and Interpreting Research Information
Both secondary and primary data collected by the market researcher are subject to many limitations.
Accepting information at face value in foreign markets is imprudent.
The meanings of words, the consumer’s attitude toward a product, the interviewer’s attitude, or the interview situation can distort research findings.
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Coping with Disparities
The researcher must possess a high degree of cultural understanding of the market in which research is being conducted.
The social customs, semantics, current attitudes, and business customs of a society or a subsegment of a society
A creative talent for adapting research methods is necessary.
A skeptical attitude in handling both primary and secondary data is helpful.
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Responsibility for Conducting Marketing Research
Decentralization: Local analysts provide information more rapidly and accurately than a staff research department
Advantage
Control rests in hands closer to the market
Disadvantage
Possible ineffective communications with home-office executives
Potential unwarranted dominance of large-market studies in decisions about global standardization
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Ford and Philips research centers
Both Ford and Philips keep track of European technology and consumers and develop products for global markets at their research centers in Aachen, Germany. Some of the best technical universities in Europe are close by in Belgium, the Netherlands, and Germany.
© John Graham
© John Graham
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Communicating with Decision Makers
Decision makers must be provided with analyses and interpretation of information gathered in a timely manner.
Decision makers must be involved in the fieldwork of seeing the market and hearing the voice of the customers in the most direct ways when the occasion warrants.
Marketing decision makers have questions about how best to serve customers, and those questions are posed and answered often through the media of questionnaires and research agencies.
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Exhibit 8.2 Managing the Cultural Barrier in International Marketing Research
There are four kinds of company–agency–customer relationships. Options B and C are better suited for managing the cultural barrier across the chain of communication. That is, in both cases, the cultural barrier is bridged within a company where people have a common corporate culture and work together on an everyday basis.
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Summary
The basic objective of the market research:
Providing management with information for more accurate decision making
The three keys to successful international marketing research:
The inclusion of natives of the foreign culture on research teams
The use of multiple methods and triangulation
The inclusion of decision makers, even top executives, who must on occasion talk directly to or directly observe customers in foreign markets
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